Stocks & Strauss Fund Manager has announced the establishment of the University Technology Fund II (UTF II) in a bid to bolster the commercialisation of groundbreaking research and technology at South African universities.
Reaching a significant milestone in December 2024, all agreements have been concluded with a substantial portion of the funds already committed, marking considerable progress towards the ambitious R400 million target fund size.
Anchor investors in UTF II include notable names such as the SA SME Fund, Stellenbosch University, and Allan & Gill Gray Philanthropies Africa, reinforcing a collaborative co-investment model built on a shared vision of innovation and advancement.
This collective effort strengthens the initiative that boasts additional university participation, including the University of Pretoria, the University of Cape Town, and WITS University, underlining a robust commitment to fostering a culture of innovation across institutions.
UTF II emerges from the foundation laid by its predecessor, UTF I, which showcased the promising potential of university-originated technologies.
One of its crowning achievements was the investment in Hyrax Biosciences—a frontrunner in bioinformatics recognised for its software that was crucial to the early detection and understanding of the COVID-19 Omicron variant.
Additionally, investments such as CubeSpace, an award-winning enterprise acknowledged by NASA and supported by over 250 global clients, demonstrate the transformative impact of strategically targeting university intellectual property (IP) and technological breakthroughs.
With a focus on investing in 15 to 20 innovative companies, UTF II aims to concentrate on highly scalable technology IP across diverse sectors.
Wayne Stocks, managing partner at Stocks & Strauss, said the potential was immense, both for the companies and for investors.
“The world is witnessing a shift towards valuing university intellectual property as an important asset class and opportunity. These companies are also providing solutions to real-world challenges, which boosts their impact and value,” Stocks said.
“If you’re seeking deep-tech investment opportunities in Africa, universities are unparalleled hubs. They possess the capacity, skilled talent, cross-faculty institutional knowledge, and long-term funding necessary to drive meaningful innovation and development in this space."
As the fund channels its resources into technology commercialisation and growth, it adopts a targeted approach that underscores the initiative's commitment to supporting ventures with substantial potential.
Moreover, UTF II has extended its mandate to include investments in alumni of South African universities, aiming to create a more interconnected entrepreneurial ecosystem reminiscent of Stanford University’s influence in nurturing Silicon Valley.
This strategic move seeks to harness the talent and entrepreneurial spirit of alumni, unlocking pathways for innovation and driving economic growth across the nation.
Anita Nel, chief director for innovation and commercialisation at Stellenbosch University, said they partnered with the UTF II to support innovation on their campus and to help students, staff, and alumni bring their ideas to market.
“The fund accelerates the development of new technologies and reinforces the university's reputation as a hub for research and innovation and builds on the successful relationship between our university and the UTF I,” Nel said.
“Additionally, the partnership offers potential financial returns that can be reinvested in research and infrastructure.”
Ketso Gordhan, CEO of the SA SME Fund, emphasised the role of the UTF in shaping South Africa’s economic landscape.
“UTF Fund I is a powerful example of what can be achieved when we align resources to unlock the potential of South Africa’s brightest minds and world class intellectual property,” Gordhan said.
“UTF Fund II will elevate our innovation landscape further and we foresee that it will attract both local and international investment interest.”
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